Positive Shifts in Mortgage Interest Rates, According to the Latest Bank of England Statistics
Clare Hollis, director of core credit, TransUnion in the UK, comments on the recent Bank of England Money and Credit statistics.
“The latest Money and Credit statistics from the Bank of England show a positive trend emerging as interest rates on new mortgages dropped by 6 basis points to 5.28%, the first decrease since November 2021. Additionally in December, individuals made a repayment of £0.8 billion on mortgage debt, compared to November's neutral stance.
Despite the uncertain economic climate, UK mortgage approvals have climbed to 50,500, providing optimism to the housing market. This uptick suggests potential pent-up demand which could be spurred on by future rate cuts.
While the potential for a larger growth in mortgage applications on the horizon is positive news, the economic impact from recent years should still be taken into consideration. Lenders should continue to assess the most up to date information possible to protect consumers and ensure responsible borrowing. Remaining vigilant and adapting to new trends is key to navigating these dynamic economic shifts."